Cryptocurrency Executive Sentenced to Jail in Montenegro Over Token Collapse.

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The CEO responsible for the $40 billion collapse of the terraUSD and Luna tokens, Do Kwon, has been sentenced to four months in jail in Montenegro. The verdict was reached after he was found guilty of forging official documents, and the sentencing also includes time already spent in detention since his arrest in March. Alongside him, Han Chang-joon, a former finance officer at Kwon’s company Terraform Labs, received the same sentence on identical charges.

Do Kwon and Han Chang-joon had pleaded not guilty during their initial court hearing in May, but the court’s decision upheld their conviction. The sentenced individuals have the option to appeal the verdict within eight days of receiving written notification from the court. Notably, Do Kwon is also facing charges in the United States and South Korea in connection with the collapse of the two digital tokens last year.

In February, US regulators charged Do Kwon and Terraform Labs with orchestrating a multi-billion dollar crypto asset securities fraud. The US Securities and Exchange Commission (SEC) accused them of failing to provide the public with complete and truthful disclosure regarding various crypto asset securities, including Luna and TerraUSD. This legal action highlighted the seriousness of the allegations and the impact of the token collapse on the cryptocurrency market.

Last year, a South Korean court issued arrest warrants for Do Kwon and five other individuals associated with the case. South Korean prosecutors alleged that Terraform Labs, based in Singapore, had violated capital market rules. However, the absence of extradition treaties between Montenegro and the United States or South Korea adds a layer of complexity to the legal proceedings.

The collapse of the terraUSD stablecoin and the associated Luna token sent shockwaves through cryptocurrency markets in May 2022. The case involving Do Kwon and the subsequent legal actions highlight the need for transparency and accountability within the cryptocurrency industry, as regulators aim to protect investors and maintain the integrity of the market.

SOURCE: Ref Image from bbc news

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